Digital Marketing Advantages Of Real Time Bidding

Real time bidding is a new system of bidding for display advertising, which has recently been used in Google's AdX and AppNexus platforms, as well as Yahoo's Right Media platforms. It allows digital marketing advertisers to bid in real time (less than 50 milliseconds), for each and every ad impression. Marketers will now be able to place bids based on specific information about searchers, such as whether a website has been previously visited, whether a smartphone is being used, and so on.

With this new development, digital marketing professionals will be able to increase or lower their cost-per-click (CPC) bid, whenever they believe that it will be more beneficial for them. This will enable them to manage a more effective and profitable digital marketing campaign. This is, of course, possible, if we assume that Google or Microsoft agree to open up real-time bidding for search, as they have done for their display networks. There is also the chance of these search engines allowing consumer search users to decide whether they want to opt-in or opt-out of real-time bidding search results.

Real-time bidding of PPC search ads can be beneficial for the searcher, the search engine, as well as the advertiser. Below is some information about how it is helpful for each:

. Searchers: People running online searches will receive more targeted advertising, as advertisers will know that they are a better fit for their digital marketing strategy, and will bid more for them.

. Search engines: Google and Microsoft are expected to earn higher revenues, because of the greater transparency that real-time bidding provides. This is even if only the top 20 percent of digital marketing advertisers choose to participate in real-time bidding.

. Advertisers: Digital marketing professionals will be able to aggressively target searchers who they feel are the most valuable to their business. This will be based on their unique 'calculated utility', by allocating funds to the clicks that could potentially bring in the most revenue.

Currently, there are many roadblocks preventing the launch of real-time bidding for search. However, the two major search players, Google and Microsoft, have the resources to surmount these obstructions, and enable real-time bidding for search. Many digital marketing pundits believe that PPC search will change in the coming three years, and have begun planning and investing for the day when real-time bidding search becomes an actuality.

Qudos Digital is a leading digital marketing agency and can be contacted on 020 8891 2077 or info@qudosdigital.co.uk.

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